Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Deutsche Bank launches new Mortgage Backed issue

Rated Mortgage Bonds Media release – 22 November 2006


Deutsche Bank launches new Mortgage Backed issue

Deutsche Bank, as Lead Manager, today launched a new programme of Rated Mortgage Bonds to the New Zealand public. This is an issue of secured first ranking bonds backed by mortgage backed securities, which carry an investment grade credit rating of BBB from Fitch rating agency. The notes are expected to be listed on the NZDX exchange.

The programme was created by Propertyfinance group (PFG), a Christchurch based non-bank property lender with offices in Auckland and Wellington. PFG develops innovative lending and investment products to the New Zealand market and currently has $350m of assets under management. PFG does not guarantee any obligation to holders of the Rated Mortgage Bonds.
The first issue under the programme is for up to $39.8 million of bonds. 2 types are available backed by either Residential or Commercial mortgage backed securities. “The underlying collateral is securities backed by first ranking mortgages on New Zealand property so its an investment that we expect many New Zealanders will identify with” said Paul Mowbray, Head of Debt Capital Markets at Deutsche Bank.

Mortgage backed securities are an established asset class in international markets. “They are a significant proportion of the debt markets in Australia, Europe and the United States and global investor demand is very strong.”

A total of $15 billion of mortgage backed securities were issued in Australia last year. A lot of the issuance in Australia has resulted from the growth in non-bank mortgage lenders, who are using this funding mechanism to efficiently fund their mortgage book.

Deutsche Bank’s Paul Mowbray says “We expect this market sector could reach $1 billion in the next three years, supported by investor demand for rated bonds and the increasing liquidity of NZX listed debt products.”

The current offer closes on 26 January unless it is filled earlier.

Chairman of PFG, Mr Barney Sundstrum said the development was timely.

“There’s concern among New Zealand investors about the relative security and return on interest-bearing investments.”

“Until now, investors have had the choice of lower yielding bank deposits, on the one hand or finance company investments of uncertain risk on the other. Rated Mortgage Bonds provides a product backed by mortgage backed securities, which have long been available to institutions, to everyday investors who would otherwise purchase debentures or hold bank deposits.”

“PFG have developed Rated Mortgage Bonds to provide the investor market with the clarity of investment in mortgages, the security of property and lower ranked debt, and an independent credit rating to allow a wide range of investors to select a return consistent with their risk appetite on an informed basis.”

For further information please contact your financial advisor or broker, or free phone 0800 40 66 40 for a copy of the registered prospectus and investment statement.

Application has been made to NZX for permission to list the securities and all the requirements of NZX relating thereto that can be complied with on or before the date of the distribution of the advertisement have been duly complied with. However, NZX accepts no responsibility for any statement in this advertisement.

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

NIWA: Scientists Say Methane Emitted By Humans ‘vastly Underestimated’

NIWA researchers have helped unlock information trapped in ancient air samples from Greenland and Antarctica that shows the amount of methane humans are emitting into the atmosphere from fossil fuels has been vastly underestimated... More>>

ALSO:

SMC Expert Reaction: Record Dry Spells And Effects On Forests

With no rain forecast before Sunday, Auckland is about to break a record for the city's longest dry spell. Niwa says Auckland is likely to hit 40 consecutive days without rain this weekend . The upper North Island is seeing severe meterological ... More>>

ALSO:

Reserve Bank: Official Cash Rate Remains At 1.0 Percent

The Monetary Policy Committee has decided to keep the Official Cash Rate (OCR) at 1.0 percent. Employment is at or slightly above its maximum sustainable level while consumer price inflation is close to the 2 percent mid-point of our target range. ... More>>

ALSO:



Science Media Centre: Novel Coronavirus Detected In China – Expert Reaction

The virus was detected after more than 40 people were hospitalised with pneumonia in Wuhan City, China and the outbreak traced to a large animal and seafood market. The Centers for Disease Control and Prevention reports that person-to-person transmission ... More>>

ALSO:

NZ First: Launch Of Parliament Petition To Remove Aluminium Dross

This afternoon to a crowd of over 100 people in Mataura -- Mark Patterson, New Zealand First List MP based in Clutha-Southland launched a parliamentary petition regarding the aluminium dross issue in Mataura, Southland. The petition asks that the House ... More>>

ALSO: